New meters might not be a smart move for consumers

Energy firms will be the real winners of the new devices

CONSUMERS are being warned that smart meters may not save them money and could
increase their energy bills.

As part of a government-backed initiative, the big energy companies will spend
£11bn installing 50m meters — which provide real-time rather than estimated
information on how much energy is being used — in 26m homes over the next
five years. This equates to £220 per meter.

When questioned by the Commons public accounts committee this month,
government officials admitted that this cost would largely be passed on to
consumers through a levy on bills.

Margaret Hodge, who chairs the committee, said: “You [the Department of Energy
and Climate Change] haven’t put a cap on costs, which might have been one of
the ways you could have protected the consumer.

“There are problems with the competition in the market, so what are you doing
that will give comfort to the consumer?”